Kenya | |||||
Low Interest Loans to Employees |
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id : 81  cat : Business Tax   | |||||
CPA's help me understand who is suppose to pay for fringe benefit tax in a case where employees are given loans below market rate by organization, is the employees or employer? |
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Asked by : Charity Sambu
DOQ : 2016-09-22 14:00:00 ![]() |
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It's the employer
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The tax burden being the difference btwm market rate or Rate given by KRA and the employer interest rate is borne by the employer If it a resident company @30%
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: Njenga Moses  DOA 2016-09-22 14:30:00 |
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It's a benefit to the employees and hence the difference between the market rate and the rate given is what is taxed. The employer remits to kra while the employee pays for the benefit. Hence it's the employee. In an event where the employer pays for the
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: Nganga Mwangi  DOA 2016-09-22 14:25:00 |
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